Foreigner Tax Withholding

There are tax withholding requirements for the foreign citizen or residents who sell US property.

Foreign Investors Real Property Taxation Act (FIRPTA) requires 10-15% of sales price be withheld for foreign ownership.  Sellers can request a waiver or reduced withholding on Form 8288 B (tax id # required).


Additional California withholding requires that 3 1/3% of sales price or the alternative withholding amount be paid to the Franchise Tax Board.

If the seller fails to provide an ITIN on Form 593-C, the real estate escrow person will withhold 3 1/3% of the total sale price.

Ask an escrow, attorney, or accountant about possible exemptions.

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